From paradox to opportunity: designing a hybrid REIT Model for Romania’s emerging capital market

This paper addresses the Romanian real estate paradox: despite the highest EU homeownership rate (95%) and billions EUR in commercial properties, capital remains trapped in illiquid structures. We propose a hybrid R-REIT framework combining fiscal neutrality (0% corporate tax, 8% preferential dividend), progressive capital thresholds (€10M→€15M), and enhanced transparency (mandatory stress testing). Comparative analysis (US, France, Spain, Bulgaria, Poland) validates the model. Projected impact: +€650M-1B BVB capitalization (year 5), €400-600M Pension Fund allocation, competitive 6-6.5% yields versus Fidelis bonds. Implementation requires Fiscal Code amendments Q2-Q3 2026.